Japan Steel, which is pursuing the acquisition of the US steel company US Steel, has made a new proposal related to this to US President Donald Trump, the Nihon Keizai Shimbun (Nikkei) reported on the 9th.
According to the report, Japan Steel delivered the new proposal to the US side before President Trump held a summit meeting with Japanese Prime Minister Shigeru Ishiba on the 7th. Nikkei conveyed that the proposal appears to include an increase in investment amount.
Japan Steel had been expected to acquire US Steel for $14.1 billion (approximately 20.5 trillion KRW) and then invest about $2.7 billion (approximately 3.9 trillion KRW) for facility improvements. In relation to this, President Trump and Prime Minister Ishiba announced at a press conference after the summit that Japan Steel would invest in US Steel instead of acquiring it.
At that time, President Trump stated that Japan Steel had decided to make a large-scale investment in US Steel and that he planned to meet with Japan Steel next week to mediate negotiations. Prime Minister Ishiba also appeared on an NHK TV program that day, saying, "It is not a simple acquisition," and emphasized that Japan Steel’s investment should ensure that US Steel remains an American company. He added, "There is resistance (in the US) to a company that was once the world’s best being acquired by Japan and becoming a Japanese company," and "From President Trump’s perspective, it is very important that US Steel remains an American company while producing high-quality products."
In an interview with Nikkei published that day, Prime Minister Ishiba also stressed, "The key point is whether (the US) will accept that US Steel continues to be an American company." However, he did not mention specific methods such as changes to Japan Steel’s acquisition plan.
The US Steel acquisition plan by Japan Steel, which former US President Joe Biden had disallowed, is expected to be newly discussed focusing on "investment" following Prime Minister Ishiba’s proposal, but it is difficult to predict what the outcome will be. Nikkei noted, "There is a possibility that the previously frustrated 'Japan Steel deal' will move again," but also pointed out, "It is difficult to guarantee smooth progress, and the outlook for negotiations remains uncertain."
Furthermore, Nikkei pointed out, "President Trump’s remarks are ambiguous in that they maintain a stance opposing the acquisition while also suggesting that there is room for negotiation with Japan Steel." Nikkei analyzed that to change Japan Steel’s plan to acquire all US Steel shares, the contract must first be terminated, and if a new contract is made with different terms, it may require shareholder approval and review by US authorities again.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
